NASDAQ$FCFS

FirstCash Holdings Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported outstanding fourth quarter results driven by strong revenue growth and the acquisition of American First Finance.

FirstCash reported outstanding fourth quarter results, driven by strong revenue growth in both the U.S. and Latin America pawn segments. The acquisition of American First Finance (AFF) was completed, diversifying the company's product offering. Consolidated retail pawn merchandise sales increased 28%, and total pawn fees increased 13%.

  • Diluted earnings per share decreased 11% on a GAAP basis, but adjusted non-GAAP earnings per share increased 81% compared to the prior-year quarter.
  • U.S. pawn segment income increased 43% over the prior-year quarter, with an improved operating margin of 24%.
  • Latin America pawn segment income increased 19% over the prior-year quarter (20% on a constant currency basis), with an improved operating margin of 22%.
  • The company completed its acquisition of AFF, adding a technology-driven retail POS payments platform.

Headline financials

Total Revenue

$502M

Previous: $392M+28.0%
EPS (adj)

$1.52

Previous: $0.84+81.0%
US Pawn Same-Store Retail Sales Growth

24.0%

Previous: -18.0%+233.3%
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

24.0%

Previous: -28.0%+185.7%
Net Income

$29.4M

Previous: $32.7M-10.3%
Operating Income

$37.1M

Previous: $43.1M-13.9%
Gross Profit

$228M

Previous: $226M+1.0%
Cash & Equivalents

$120M

Previous: $65.9M+82.3%
Total Assets

$3.84B

Previous: $2.37B+61.7%
Stock-Based Comp

-$2.94M

Previous: -$2.34M-25.9%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$502M

Q4 2021+28%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

FirstCash · $502M total across 5 segments · Q4 2021

  • Retail Merchandise Sales
    $328M+27.8%
  • Pawn Loan Fees
    $129M+13.3%
  • Leased Merchandise Income
    $22.7M
  • Wholesale Scrap Jewelry Sales
    $13.1M-39.8%
  • Interest and Fees on Finance Receivables
    $9.02M

Forward guidance

The company expects to achieve significant revenue and earnings growth in 2022, driven by improving demand for pawn loans, normalized pawn merchandise inventories, and the new retail POS payment solutions segment (AFF).

Tailwinds

  • Demand for pawn loans continues to improve, especially in the U.S.
  • Pawn merchandise inventories are well positioned, having essentially normalized to pre-COVID levels.
  • The new retail POS payment solutions segment (AFF) is expected to drive significant revenue and earnings growth.
  • The Company expects up to 60 new store additions for the full year 2022, primarily in Latin America.
  • Inflationary economic environments typically benefit the Company by driving increased customer demand.

Headwinds

  • The current operating environment continues to present uncertainties related to the COVID-19 pandemic.
  • Macroeconomic factors such as supply chain issues, inflation and weaker consumer sentiment could have negative impacts.
  • COVID related concerns, staffing constraints, supply chain delays and weather events year-to-date have impacted operations.
  • Potential impacts around the U.S. tax refund season could affect retail sales and customer payments.
  • There is uncertainty around consumer behavior as government stimulus programs have expired.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+0.1%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+14.8%

Q1 2022

Best reaction

-13.0%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+4.1%+10.6%
Q4 2025+3.3%+5.7%+10.7%
Q3 2025+7.2%+8.0%+7.0%
Q1 2025+9.1%+10.6%+5.6%
Q4 2024+0.4%+0.6%+0.3%
Q3 2024-4.2%-3.9%-5.2%
Q2 2024+1.6%+1.7%+7.7%
Q1 2024-12.4%-14.4%-10.1%
Q4 2023+1.2%+0.9%+0.2%
Q3 2023+5.6%+7.4%+10.6%
Q2 2023-2.0%+0.3%-8.2%
Q1 2023+8.1%+6.9%+1.8%
Q4 2022-2.4%-1.8%-1.9%
Q3 2022+9.9%+11.9%+7.8%
Q2 2022+12.2%+9.7%+19.2%
Q1 2022+14.8%+9.1%+6.1%
Q4 2021+7.6%+4.4%-8.5%
Q3 2021+1.4%+4.5%-23.7%
Q2 2021+2.9%+4.1%+12.3%
Q1 2021-0.3%+5.6%+17.6%
Q4 2020+5.7%+3.8%+13.7%
Q3 2020-4.8%-9.7%+8.4%
Q2 2020+2.1%-6.5%-5.2%
Q1 2020-5.9%-0.6%-1.0%
Q4 2019+3.0%+1.9%-9.4%
Q3 2019-10.3%-8.9%-17.1%
Q2 2019-2.9%-1.4%-7.0%
Q1 2019+8.2%+8.3%+4.9%
Q4 2018-4.5%-5.1%+4.8%
Q3 2018+1.8%+5.7%+13.9%
Q2 2018-12.2%-13.4%-12.8%
Q1 2018+4.6%+8.7%+11.6%
Q4 2017+1.2%+0.1%+2.1%
Q3 2017+6.7%+5.7%+10.4%
Q2 2017+0.9%+0.5%+1.6%
Q1 2017+1.0%+3.1%+4.5%
Q4 2016+1.9%+1.8%+3.4%
Q3 2016-0.6%-0.8%+0.8%
Q2 2016+0.1%-1.2%+1.1%
Q1 2016-6.1%
Q4 2015-5.7%
Q3 2015-10.2%
Q2 2015-12.3%
Q1 2015+0.3%
Q4 2014-13.0%
Q3 2014-1.4%
Q2 2014+0.6%
Q1 2014-2.8%
Q4 2013-11.2%
Q3 2013+4.6%
Q2 2013+0.6%
Q1 2013-0.3%
Q4 2012+3.3%
Q3 2012-3.0%
Q2 2012+1.6%
Q1 2011-0.3%
Q1 2012+1.3%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2010-1.4%
Q3 2011-1.4%
Q4 2010-0.1%
Q2 2011-0.1%
Q2 2010-0.1%
Q1 2010-1.0%

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